Needing you opinion on whether I should Buy Now or Later.
- Thread starter Peter 14.7
- Start date
Peter,
this has got my interest as am trying to ascertain what street the property is in. I would like to see a Redfern property with dual income potential as this one has. I've always considered an inner city property providing residence and a separate rental income or dual income to be a profitable proposition.
I thought I knew where all the brothels were in Redfern (I used to walk past quite a few when I lived there). There are one or two in George Street. Quite a few near the Lebanese Restaurant strip in Cleveland Street near Elizabeth Street and a few more further up and down Cleveland Street.
If the house is on a main road in Redfern or Surry Hills, the light outside the terrace is permanently on, the terrace has very large numbering and there is an entrance that affords some privacy from the main road (such as latticework with ivy, large potplants obcsuring the entrance etc) it's a good bet its a brothel.
There have also been a few swingers establishments in the area-one was across the road from me in Walker Street but I didn't know about it until I saw it advertised.
I am starting to think now might be a good time to buy into Redfern-last time I bought here was 1993 (middle of a recession and very little buyer interest). In hindsight this was a good time to buy.
Cheers Ajax
this has got my interest as am trying to ascertain what street the property is in. I would like to see a Redfern property with dual income potential as this one has. I've always considered an inner city property providing residence and a separate rental income or dual income to be a profitable proposition.
I thought I knew where all the brothels were in Redfern (I used to walk past quite a few when I lived there). There are one or two in George Street. Quite a few near the Lebanese Restaurant strip in Cleveland Street near Elizabeth Street and a few more further up and down Cleveland Street.
If the house is on a main road in Redfern or Surry Hills, the light outside the terrace is permanently on, the terrace has very large numbering and there is an entrance that affords some privacy from the main road (such as latticework with ivy, large potplants obcsuring the entrance etc) it's a good bet its a brothel.
There have also been a few swingers establishments in the area-one was across the road from me in Walker Street but I didn't know about it until I saw it advertised.
I am starting to think now might be a good time to buy into Redfern-last time I bought here was 1993 (middle of a recession and very little buyer interest). In hindsight this was a good time to buy.
Cheers Ajax
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The Adult Real Estate Industry
Gee I have heard some people complain certain threads go off-topic when we talk about shares etc., I wonder how brothels and swingers establishments rate !!
If I ever move to Sydney I will remember to leave the porch light off, use small street numbers, and avoid ivy !!
Out of interest, what do people think of Glebe versus Redfern ?
Cheers
TryHard
Gee I have heard some people complain certain threads go off-topic when we talk about shares etc., I wonder how brothels and swingers establishments rate !!
If I ever move to Sydney I will remember to leave the porch light off, use small street numbers, and avoid ivy !!
Out of interest, what do people think of Glebe versus Redfern ?
Cheers
TryHard
Lower floor unit a nice earner and future parent’s accommodation when they get old and frail, or massive office for my business I decide to grow it more. Hence opportunities for business to subsidise rent etc….
Pete you are going to be hard pressed to find this sort of thing every day of the week. Market may do this or that but will you find one with the parents accom/parking when the market moves?
I would ask myself, "do I want to pay a bit more and get this one or will I wait and get the next thing?"
If it is something really special with features that are rare in that area or particularly sought after by you in 4/5 years time when you are still happily living there will you regret paying 5% 10% 15% more than the market? I wouldn't, but that's just me. (I wouldn't apply this to an ip just a long term ppor)
Think about an apartment 3 streets back from Bondi Beach, in the 80's what was 15% too much is a steal by today's standard. So many people want to live there. Same with this find. You know the area is sought after, and an aparment/office and PARKING. Parking you say!
You have lived in an area with Brothels, they are more low key than one would expect. They are in the 'burbs too not just the inner city. Often above shops (look out for Korean "music studios").
Pete you are going to be hard pressed to find this sort of thing every day of the week. Market may do this or that but will you find one with the parents accom/parking when the market moves?
I would ask myself, "do I want to pay a bit more and get this one or will I wait and get the next thing?"
If it is something really special with features that are rare in that area or particularly sought after by you in 4/5 years time when you are still happily living there will you regret paying 5% 10% 15% more than the market? I wouldn't, but that's just me. (I wouldn't apply this to an ip just a long term ppor)
Think about an apartment 3 streets back from Bondi Beach, in the 80's what was 15% too much is a steal by today's standard. So many people want to live there. Same with this find. You know the area is sought after, and an aparment/office and PARKING. Parking you say!
You have lived in an area with Brothels, they are more low key than one would expect. They are in the 'burbs too not just the inner city. Often above shops (look out for Korean "music studios").
Cgt Implications
By now and rent it out while we rework upstairs. Assume purchase outlay $875and rent is $650 week net we need be NG $570 week so after tax $295 a week plus $1k land tax every year
If you Rent the property first rather than live in it for a period of time first,your capital gains tax will be much higher
By now and rent it out while we rework upstairs. Assume purchase outlay $875and rent is $650 week net we need be NG $570 week so after tax $295 a week plus $1k land tax every year
If you Rent the property first rather than live in it for a period of time first,your capital gains tax will be much higher
WARNING Flippant Fun Ahead
Hello All
What the
I thought SS was full of hard nosed, low balling, number crunching investors.
Turns out your all softies for a PPOR with potential: D
And as for Ajax he will buy it out from under me. Did I say Redfern I meant RedBANK, Red Bank near Bankstown nowhere near Redfern.
Seriously though I welcome every post with sincere thanks.
I have designed probably 200 homes. Won four design awards. No sweat. But design my own home and it is version 34 and counting.
Being a PPOR this is the same.
I met the agents tonight at my place. Some questions to answer and to appraisal my PPOR should we sell. They think $600k which is better than I expected. My agent whom I trust , will do the same tomorrow. More interested in rental though.
Anyhow, the selling agents are IMHO very nervous about this sale falling over.
1week to go and three contracts out and that do not include me. It doesn't fit a market niche which is to our advantage. Too rich for Yuppie FH0, too confusing for Renovators, and too Brothel for Paddington types slumming it.
Will go to auction they say but the vibe I got was "and then we will negotiate." Buyers committed to selling. Hello, desperate vendors.
As I said to Mrs. 147 if only a few things were more tied down (her employer is being bought out) but then as she said when is anything not in flux? A woman’s logic.
In reply
Pete W
You put a good case with the fixed rate IP for three years and then swap the PPOR over as market turns. Appeals to the anti risk me. BTW your logic was pretty good overall to me.
AS I see it , over three years excluding a massive crash and recession I will not lose and be holding $1M+ easily with an investment below at $250 week cash and no land tax or second rates being PPOR. Sounds good hey.
Ani , thanks for chiming in and knowing where you live I know you “walk the talk” regarding nice PPOR’s.
PS your quote will be with Christine tomorrow. Honestly!! I may need the job! LOL
Ajax
All I can say is your comment of I thought I knew where all the brothels were in Redfern is courageous in the truest Yes Minister sense. Personally I don’t know the swinger clubs but I am proud to say Surry Hills has one of the best in Aust, I am told.
Try Hard
Actually some brothels advertise for financial investors in the business section of the SMH. Personally I think, thugs, aside, would be a great investment. Mrs. 147 has a different view.
Glebe has feral lifestyle, social issues and poor public transport. Redfern is better IMO but some people love it.
Wish-ga you are must be an agent in a former life.
Unit plus PARKING
I am glad you’re not on the other side. You know the buttons to push. ( I note to most of Australia parking is a given so may I explain. In Inner City Sydney even Porsches are in the street.
It is the ultimate inner city status symbol at dinner parties. I own a Porsche , I own a Merc , humm, well I have an off street garage. Game Over! )
And Ggumpshots. Good point. But we have been here 9 years and this one could easily be twenty years. CG not an issue over this term , do you agree.
Still doing the numbers and will outline more tomorrow.
Peter 147
Hello All
What the
I thought SS was full of hard nosed, low balling, number crunching investors.
Turns out your all softies for a PPOR with potential: D
And as for Ajax he will buy it out from under me.
Did I say Redfern I meant RedBANK, Red Bank near Bankstown nowhere near Redfern. Seriously though I welcome every post with sincere thanks.
I have designed probably 200 homes. Won four design awards. No sweat. But design my own home and it is version 34 and counting.
Being a PPOR this is the same.
I met the agents tonight at my place. Some questions to answer and to appraisal my PPOR should we sell. They think $600k which is better than I expected. My agent whom I trust , will do the same tomorrow. More interested in rental though.
Anyhow, the selling agents are IMHO very nervous about this sale falling over.
1week to go and three contracts out and that do not include me. It doesn't fit a market niche which is to our advantage. Too rich for Yuppie FH0, too confusing for Renovators, and too Brothel for Paddington types slumming it.
Will go to auction they say but the vibe I got was "and then we will negotiate." Buyers committed to selling. Hello, desperate vendors.
As I said to Mrs. 147 if only a few things were more tied down (her employer is being bought out) but then as she said when is anything not in flux? A woman’s logic.
In reply
Pete W
You put a good case with the fixed rate IP for three years and then swap the PPOR over as market turns. Appeals to the anti risk me. BTW your logic was pretty good overall to me.
AS I see it , over three years excluding a massive crash and recession I will not lose and be holding $1M+ easily with an investment below at $250 week cash and no land tax or second rates being PPOR. Sounds good hey.
Ani , thanks for chiming in and knowing where you live I know you “walk the talk” regarding nice PPOR’s.
PS your quote will be with Christine tomorrow. Honestly!! I may need the job! LOL
Ajax
All I can say is your comment of I thought I knew where all the brothels were in Redfern is courageous in the truest Yes Minister sense. Personally I don’t know the swinger clubs but I am proud to say Surry Hills has one of the best in Aust, I am told.
Try Hard
Actually some brothels advertise for financial investors in the business section of the SMH. Personally I think, thugs, aside, would be a great investment.
Mrs. 147 has a different view. Glebe has feral lifestyle, social issues and poor public transport. Redfern is better IMO but some people love it.
Wish-ga you are must be an agent in a former life.
Unit plus PARKING
I am glad you’re not on the other side. You know the buttons to push. ( I note to most of Australia parking is a given so may I explain. In Inner City Sydney even Porsches are in the street.
It is the ultimate inner city status symbol at dinner parties. I own a Porsche
, I own a Merc , humm, well I have an off street garage. Game Over! )And Ggumpshots. Good point. But we have been here 9 years and this one could easily be twenty years. CG not an issue over this term , do you agree.
Still doing the numbers and will outline more tomorrow.
Peter 147
Hello All
Well I have decided to buy provided the price is right. Auction is week and a half away.
I have improved the return to 5.9% gross at $XXXk which I could be happy with. What do you think. Will take the advise and fix for three years at say 6.9% for peace of mins with some variable to allow pay down when it goes as PPOR.
Question is what price to bid, die dillegence re termites and such, and conviinveing the bak to cough up $800+
All do-able but time consuming.
Thanks for the advice, it has helped but will keep my card to my chest at this stage on how.
Peter 147
Well I have decided to buy provided the price is right. Auction is week and a half away.
I have improved the return to 5.9% gross at $XXXk which I could be happy with. What do you think. Will take the advise and fix for three years at say 6.9% for peace of mins with some variable to allow pay down when it goes as PPOR.
Question is what price to bid, die dillegence re termites and such, and conviinveing the bak to cough up $800+
All do-able but time consuming.
Thanks for the advice, it has helped but will keep my card to my chest at this stage on how.
Peter 147
HI all
An update here FYI.
We have decided to pass despite it being a good deal.
Auction is tonight and should be around $750 to $850k.
Agent is very keen for us to be there so I assume interest is low/limited.
My agent, whom I trust assessed rental as
Self contained flat $250 a week
4 rooms as offices @$170 a week each
So $930 a week gross.
Land value was $300k ish and opportunity to extend and develop exists to say add another home to the rear.
Anyone interested feel free to call the agent Bridgette Blackman 0419 555 253.
The website to view is:
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2004815514&n=
So at this point, many would be thinking why am I passing.
Well the idea was IP to become a PPOR. However, the process of this deal, including your comments above, has helped Mrs 147 and I really analyze where our future is?
We always said when 40 we drop out of Sydney back to the Country and that is only 2 years away.
In addition, parents are getting older in Victoria so a move back may be forced anyhow.
Some other person reasons also factor in which I cannot say yet.
So when considered as a IP only, whilst very good, I have to ask myself is the market going to flatten or move up again in the near future or is rents going to match rate rises or exceed. In addition, if I do buy and sell out in 2 years will I make $ or lose?
Personally, I think no to market and the costs are unlikely to be recovered over this timeframe.
Moreover, when coupled with exit tax, and yearly land tax hit now in NSW, as a pure IP I can better interstate.
So that the story. I greatly appreciate everyone who posted. This has allowed us to consider our world and realise it is changing at the moment. We often do not do this and sometimes realize that after 5 years you are going down the wrong path. I am glad we did at this point.
Our path is unfolding and it is very different to what we had locked in for the last 15 years. SO I hope my frankness helped you all realize how much I valued your expert IP and insightful Personal comments and opinion.
Good Hunting, Peter 147
An update here FYI.
We have decided to pass despite it being a good deal.
Auction is tonight and should be around $750 to $850k.
Agent is very keen for us to be there so I assume interest is low/limited.
My agent, whom I trust assessed rental as
Self contained flat $250 a week
4 rooms as offices @$170 a week each
So $930 a week gross.
Land value was $300k ish and opportunity to extend and develop exists to say add another home to the rear.
Anyone interested feel free to call the agent Bridgette Blackman 0419 555 253.
The website to view is:
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2004815514&n=
So at this point, many would be thinking why am I passing.
Well the idea was IP to become a PPOR. However, the process of this deal, including your comments above, has helped Mrs 147 and I really analyze where our future is?
We always said when 40 we drop out of Sydney back to the Country and that is only 2 years away.
In addition, parents are getting older in Victoria so a move back may be forced anyhow.
Some other person reasons also factor in which I cannot say yet.
So when considered as a IP only, whilst very good, I have to ask myself is the market going to flatten or move up again in the near future or is rents going to match rate rises or exceed. In addition, if I do buy and sell out in 2 years will I make $ or lose?
Personally, I think no to market and the costs are unlikely to be recovered over this timeframe.
Moreover, when coupled with exit tax, and yearly land tax hit now in NSW, as a pure IP I can better interstate.
So that the story. I greatly appreciate everyone who posted. This has allowed us to consider our world and realise it is changing at the moment. We often do not do this and sometimes realize that after 5 years you are going down the wrong path. I am glad we did at this point.
Our path is unfolding and it is very different to what we had locked in for the last 15 years. SO I hope my frankness helped you all realize how much I valued your expert IP and insightful Personal comments and opinion.
Good Hunting, Peter 147
